The hottest cash flow is tight XCMG Hong Kong issu

2022-08-01
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Tight cash flow XCMG Hong Kong issued 593million shares

tight cash flow XCMG Hong Kong issued 593million shares

China Construction Machinery Information

Guide: the rumor that Sany, the two leading domestic machinery companies, will jointly go public in Hong Kong has finally made the latest progress. XCMG machinery announced that on August 19, it received the reply on approving XCMG Group Construction Machinery Co., Ltd. to issue overseas listed foreign shares issued by the CSRC and approved the issuance of XCMG machinery

the rumor that Sany Heavy Industry, the two leading domestic machinery enterprises, will jointly go public in Hong Kong has finally made the latest progress

XCMG machinery announced that on August 19, it received the reply on approving XCMG Group Construction Machinery Co., Ltd. to issue overseas listed foreign shares issued by the CSRC, which approved XCMG machinery to issue no more than 593million overseas listed foreign shares. After the issuance, the company can be listed on the main board of the Hong Kong stock exchange

or disclosed at the same time with the announcement of Sany's IPO in Hong Kong on the same day. After the issuance, no more than 59.27 million state-owned shares of the company held by the social security fund will be converted into overseas 24. Software and user interface: software and interactive man-machine dialogue operation interface under the windows operating environment

according to public information, this is the second IPO of domestic machinery companies in Hong Kong after Zoomlion landed on the Hong Kong Stock Exchange last December. Zoomlion, which went to Hong Kong for IPO before them, raised about HK $13.03 billion in H shares

previously, at the 12th Five Year Plan of Hong Kong and the development forum of economic, trade and financial cooperation between the two places, Vice Premier Li Keqiang announced that he would support mainland enterprises to list in Hong Kong and issue bonds for financing. Then the market began to spread rumors that XCMG and sany would go to Hong Kong for IPO on the same day. In this regard, the Oriental Morning Post called XCMG and sany, and the other party confirmed this

in fact, the IPO of XCMG machinery and Sany Heavy Industry in Hong Kong has been brewing for a long time. As early as January, XCMG machinery issued an announcement and began to contact foreign merchants directly. It said that the board of directors held on January 3 had agreed to issue H-shares and list them, and the H-shares issued this time did not exceed 20% of the total share capital after issuance. In May, Sany executives also publicly said that they would strive to achieve H-share IPO within the year

according to the IFR report of Thomson Reuters, Sany Heavy Industries plans to be listed in Hong Kong on August 25 or September 1, while XCMG machinery hopes to be listed in Hong Kong on September 1 or September 8, and both are likely to be listed at the same time

according to Sany's announcement on the stock exchange, up to now, the company has not disclosed the progress of IPO in Hong Kong. Therefore, it is still unknown whether Sany and XCMG can jointly IPO

cash hungry and eager for financing

according to the public information, according to the regulations of the Hong Kong stock exchange, listed enterprises should make a total profit of no less than HK $50million in the past three years, and their market value should be at least HK $2billion when they are listed, while mainland enterprises need to meet the requirements of net assets of no less than 400million people, fund-raising of no less than US $50million and after tax profit of no less than RMB 60million in the past year to be listed in Hong Kong

the semi annual report of XCMG machinery showed that the net profit in the first half of the year was about 2.229 billion yuan, an increase of 61.7% over the same period of the previous year. In 2010, the net profit attributable to the owner of the parent company was about 29.26 yuan, an increase of 68.04% over the same period of the previous year. It is worth noting that the cash flow from operating activities of the company shows a tight trend: in 2010, the net cash flow from operating activities was about 476million yuan, a decrease of 94.59% over the same period of the previous year; In the first half of 2011, the net cash flow from operating activities was about -916million yuan

the financial statements of Sany Heavy Industry show that the situation is similar to XCMG machinery: the total mileage of net profit put into operation will reach 8887 kilometers, which will rise sharply, but the net cash flow from operating activities will show a downward trend

some insiders believe that based on the company's cash situation, listing in Hong Kong to raise funds can not only ease the tight cash flow, but also take this opportunity to increase the pace of overseas expansion

IFR under Thomson Reuters reported the event that Sany plans to raise up to US $3billion by selling 15% of the company's expanded share capital; XCMG machinery, on the other hand, seeks to raise US $billion by selling no more than 20% of the capital stock of China's civilization and China's road companies that have been repeatedly mentioned, and 15% of the over allotment rights. Meanwhile, Bank of America Merrill Lynch, Citigroup and CITIC Securities International are the underwriters of Sany Heavy Industry. BNP Paribas, China International Finance, Credit Suisse, HSBC, Macquarie and Morgan Stanley undertook the IPO of XCMG machinery

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